Liangyu is also touring flood control systems in the low-lying Netherlands, famed for clawing back land from an encroaching sea and building some of the world's most formidable flood defences.

"China is interested in our water management experience, while Dutch companies are interested in investing in China and exporting our know-how," said a spokeswoman for the Dutch ministry of transport, public works and water.

A prolonged drought over a wide swathe of China is threatening drinking water supplies for 13.4 million people and 12 million cattle, the official Xinhua news agency has said.

Chinese Premier Wen Jiabao warned last month that abnormal weather conditions, a warm winter and drought, could reduce the country's grain production this year after three years of bumper harvests.

China as well as other Asian countries are facing less rainfall, water scarcity, heatwaves, floods and migration of millions of people as a result of climate change, the United Nations climate panel warned in a report last week.

The Dutch institute for sustainable use of rural areas, Alterra, will help China introduce an early warning system for droughts so that the country can take measures ahead of dry periods, the Dutch ministry spokeswoman said.

The Chinese delegation also signed an agreement with environment group WWF to protect fish stocks during various water works, such as the construction of dams and dikes.